Global travel industry to outpace world Economy over next decade — WTM Report

November 5, 2025 in Companies, Travel & Tourism by Editor

The global travel and tourism industry is projected to grow faster than the wider world economy over the next ten years, driven by rising consumer appetite for experiences, expanding middle classes in emerging markets, and a surge in long-haul travel.

According to the World Travel Market (WTM) Global Travel Report, released on November 4, at the opening of WTM London 2025, the industry is on track to record annual growth of 3.5pc through 2035 — outpacing expected global economic growth of 2.5pc per year.

By 2035, travel and tourism are forecast to generate more than USD16 trillion, representing nearly 12pc of global GDP, based on data from the World Travel & Tourism Council (WTTC) and Oxford Economics.

The upbeat projections follow a record-breaking year for the sector, with international arrivals surpassing 1.5 billion in 2025 — exceeding pre-pandemic levels last seen in 2019.

The report attributes the surge to shifting consumer priorities, as travellers increasingly spend on experiences and live events rather than material goods. Destinations are now competing to attract global concert tours and cultural festivals following the success of blockbuster shows such as Taylor Swift’s Eras Tour, which drew over 10 million fans, and the Oasis Live ’25 Tour, expected to attract two million fans across 13 countries.

Economic growth in emerging markets, particularly in the Asia-Pacific region, is also expected to sustain outbound travel demand, while improved connectivity and digital innovation continue to lower barriers to global exploration.

“Consumers continue to prioritise travel spending despite cost-of-living pressures,” the report notes. “Travel remains a high share of discretionary expenditure, supported by pent-up demand and expanding access to international destinations.”

WTM highlights several key trends reshaping global travel behaviour. More travellers are venturing off the beaten path, seeking lesser-known destinations and shoulder season travel to avoid extreme summer temperatures.

A notable shift towards “coolcations” — holidays in cooler northern climates — is gaining traction, with arrivals to Sweden, Norway, and Finland expected to rise by 9% in 2025, outpacing traditional Mediterranean destinations.

However, sustainability remains a major challenge. While consumers express concern about aviation emissions and overtourism, few are willing to pay higher prices for greener options, slowing investment in sustainable travel infrastructure.

Industry Capacity Expands

To meet surging demand, the aviation, cruise, and hospitality sectors are ramping up capacity. Aircraft manufacturers Boeing and Airbus have more than 15,000 new planes on order, global cruise capacity is set to expand by 6% in 2025, and the hotel industry is adding over 500,000 new rooms this year, with another one million under construction.

Digital transformation is also fuelling growth. Social media, online booking platforms, and artificial intelligence are reshaping how travellers plan and purchase trips. The report found that three times as many travel professionals expect AI tools to increase travel spending rather than reduce it.

Despite the positive outlook, the report cautions that economic and geopolitical headwinds remain. Rising trade tariffs under the Trump administration have increased costs, while talent shortages continue to pressure service quality across multiple markets.

The near-term outlook for North America is “less optimistic,” with inbound arrivals to the United States expected to fall 6pc in 2025, delaying recovery to pre-pandemic levels until at least 2029.

However, WTM analysts note that opportunities in Africa, Asia-Pacific, and the Middle East — driven by expanding aviation networks, visa liberalisation, and youth-led travel demand — could offset slower growth elsewhere.

Chris Carter-Chapman, WTM London’s Event Director, said the report’s findings reinforce this year’s event theme — “Reimagining Travel in a Changing World.”

“With the accelerating rate of change in travel, our event and content such as this report will support industry professionals as they navigate the opportunities and challenges ahead,” he said.

Dave Goodger, Managing Director for EMEA at Tourism Economics, added that the research provides a “vital manual for understanding and capitalising on the ever-evolving dynamics of global travel.”

256 Business News is attending WTM 2025 with support from Uganda Airlines